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A crisis is brewing in the gas production industry of Ukraine - media

The gas production industry of Ukraine may suffer significantly due to the inaction of the Interdepartmental Commission on International Trade, which in June did not extend the term of price commitments for plants that produce high-tech drill and casing pipe to the order of an American company. Journalist Olha Petriv writes about this in the article "Interpipe destroys the gas production industry in Ukraine with the help of officials" for the UNN website.

"The Ukrainian gas production industry, which is gradually being revived with the help of an American company, may find itself in a deep crisis due to the inaction of Ukrainian officials, who play to the business interests of one of the Ukrainian oligarchs," the article says.

The author of the article explains that after the introduction of the public bidding system in Ukraine through Prozorro, a powerful American company from the state of Pennsylvania - Vorex, entered Ukraine and began winning tenders for the purchase of drill and casing pipe for the needs of the state sector of the gas production industry of Ukraine. The Interpipe company, which for many years supplied pipes to state customers, initiated an anti-dumping investigation before the Interdepartmental Commission on International Trade against foreign plants that produce drill and casing pipe on the order of Vorex.

"The investigation was initiated under the guise of protecting the national producer regarding pipes that are not produced by Interpipe or anyone else inside Ukraine at all," Petriv writes.

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As the author of the article points out, UkrGasVydobuvannya needs drill pipes today more than ever, because its remains in the warehouses are almost non-existent. "There is no casing pipe with a diameter of 508 mm at all," the article says.

The article reminds that if the interdepartmental commission does not make appropriate decisions, the purchase price of drilling and casing pipe for the UkrGasVydobuvannya state company will increase by more than 52% and will lead to additional unplanned expenses in the amount of more than half a billion hryvnias.

"The consequence of this will be the disruption of the Ukrainian gas drilling program, a sharp drop in production and a deep energy crisis with the probable disconnection of gas supply to enterprises and households," the author summarizes.

The article also states that the U.S. Congress drew attention to this problem and sent appropriate appeals to the American and Ukrainian authorities.

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